Before Entering the Retirement Age Prepare These 4 Things – What do you want to do in later life? Whether opening a business, pursue a hobby, or just relaxing at home and spending time with children and grandchildren?
Whatever you desire, you should prepare it well before retirement. The reason, many people are confused and ultimately stressed out of boredom when retired. Especially for those who almost every day spend time in the office.
What preparation should be done before retirement? Here’s what to do before retirement:
Create a financial plan
Make a list of your goals and sort by priority or which ones you most want to achieve. Next, list the pros and cons of each goal. Suppose you want to travel around world.
Pros means you can better enjoy and memaknai the rest of life. You also avoid boredom. The side of the counter you need a lot of funds and may have to sell one asset.
Create a budget plan from each goal and write the source of the funds. Is it from retirement savings, from passive income, or investment returns? At retirement, you are no longer working so that this source of funds should be carefully thought through.
Think of health funds
One expenditure that attempts to minimize when young may be one of them health costs. Whether it’s insurance premiums, or other expenses that include the purchase of drugs.
But in old age, healthcare costs are the top priority. To reduce the burden of old age medical expenses, since youth you must have health insurance.
Be sure to have an investment
Approaching retirement, try calculating how much money it takes per month to live. In addition to pension funds, you will probably make up your investment return. Do not take investment all at once.
Financial planners advise to take no more than 3-4 percent per month from one source of investment. This means you do have to square off in diversifying your portfolio.
Turn your retirement plan into action
After you complete the three steps above, it’s time to apply it in real life. At the beginning of retirement, you may need many adjustments.
One of them set expenditures to be more efficient so that pension savings do not run out just like that. Evaluate each month to keep you running as planned.